Books & Writings by SPam McGee

Alaska Short Stack Stories, Series I, II, & III ~ Alaska's Deadliest Sin-Drill Baby Drill ~ Alaskan Company Man ~ Eklutna Lake Worrier ~ From the Fifth Floor ~ Hannah Cove ~ My Journey to Landes House ~ Poemetrics ~ Quinn the "Tanik" Eskimo ~ S.O.S. from Beaver Lake ~ The Teachings of the Swamp Fox ~ Trans-Alaska-Pipeline Funny Stories ~ Spirit Dog & the Ghost Wind

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Tuesday, March 10, 2015

Independent Update

About a year ago, Alaska's “Pride & Joy” Independent oil exploration and exploitation company decided that is had enough with the Alaska legislatures, packed up and moved south. Yes, Pioneer Natural Resources was considered a “Heavy Hitter” in the “Independent Oil Brokers” brackets, and was invited to Alaska by Sarah Palin. Hey, Miss Pizzo gave them an offer they couldn't refuse! And it was the “Litmus Test”, as Pioneer was the 1st to take her up on such an invite in hopes this venture would be successful and start filling up the almost empty Trans-Alaskan-Pipeline. See, Palin had pissed off “Big Oil”, so they said the hell with any “new” investments which meant with the Prudhoe Bay field on decline, so would be in delcine what was headed south – to which the state depended on. So out of desperation, the invite went out to the “Independents” that had shied away from Alaska's North Slope for almost 35-years – as it was not nice to mess with “Big Oil”! Yes, it meant a change of scenery now with “Mediocre Oil” in competition with “Big Oil”, like the EXXONs. It means survival through cutting corners and costs, and that begins with lower salaries for the workers! A job at Pioneer paid about $32 for craft labor, a block away at a Conoco site, $55 for the same dam routine. Not to mention Conoco had a bus with heat! Now after spending close to a $billion$ in investors resources, Pioneer never found the pay-back resources as the formation was stubborn to produce the “Black Gold”, so like Palin decided it better to quit while the quitting was good. So Pioneer put its Oooguruk prospect on the auction block. But no takers when it placed its leases and infrastructure on e-bay, as “Big Oil” knew better this formation – it was “Crap” and would produce for a few days then retire. With that and out of desperation, the the price started to drop, as this Texas outfit was desperate to get back home, where the grass was a greener. Then it finally struck pay-dirt and compromised a deal with another little known “Independent” from Texas, called Caelus. An “Independent” that didn't even register on the “mediocre” scale. But Caelus had a backer, called Apollo Global Management that held over a $billion$ to invest, money that would be used to buy out Pioneer and invest in another prospect that held potential, called Nuna. See, what Caelus purchased in this buyout was not an oil producer, but the infrastructure that could be used when oil was found – somewhere else. So Pioneer finally sold out for 45% the original asking price and made off in a Brinks truck holding $300-million in cash – which meant a pretty good loss, maybe retaining only 38% of the original investment. And Pioneer made it out of Alaska through Canada and finally able once again to hug a Texas prairie sage brush. Then the price of oil crashed, and Pioneer's stock is well, enough said. But now the new kid on the block in Alaska was Caelus, and about to sink a whole lot of extra loot into the Nuna prospect, in efforts to use the $300-million dollar “toy” that the investors had purchased, as it was like a toy without a battery – missing was the oil! Now the Nuna was estimated to cost upwards $1.5-Billion, that is where Apollo enters the scene, as an investor. Wow, according to Apollo president, that investment management firm has seen an 85% lose in value, just in the 4th quarter of 2014! This ain't good. So look for a bottom-basement fire sale over at Oooguruk, as that kind of bleeding ain't healthy! And here is the deal. When “Big Oil” sees the wining and dining and schmoozing and the deals cut between the Alaska legislature and the “Independents”, of course they get pizzoed-off and will do everything in their power to make sure NO “Independent” is successful. Why? Because “Big Oil” never went crying to Juneau for that same preferential treatment. If the Juneauites gave the same courtesy to “Big Oil” , like with relief as it has demonstrated so reckless with the “Independents”, there would be all kinds of work up north – and at a better pay and the reason “Independents” are NOT welcome!

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